HSC Data Causes Share Price Correction, Here's What Analysts Say

The decision to disclose High Shareholding Concentration (HSC) data, or high share ownership concentration, is seen as influencing the movements of several stocks included in the list. Following the announcement of the HSC list on Thursday (2/4/2025), trading data showed that seven stocks on the HSC list faced selling pressure, while the remaining two strengthened. For instance, PT Satria Mega Kencana Tbk (SOTS) recorded the deepest correction of 14.58%, followed by PT Rockfields Properti Indonesia Tbk (ROCK) which fell 13.06%, and PT Abadi Lestari Indonesia Tbk (RLCO) which weakened 12.60%. On the other hand, only two stocks rose, namely PT Ifishdeco Tbk (IFSH) by 11.42% and PT Lima Dua Lima Tbk (LUCY) by 9.76%. University of Indonesia capital market observer Budi Frensidy said the data has the potential to trigger a reduction in the weight of stocks in global indices, such as MSCI, and drive foreign fund outflows. Nevertheless, Budi added that the price correction could be a buying opportunity for investors who believe in the issuer’s fundamentals. According to him, significant ownership by controlling shareholders can serve as a factor supporting price stability in the long term. “Once that period (of correction) is over, it goes back to the fundamentals, whether we believe in these controlling shareholders (PSP) who control perhaps 80-something percent of the issuer’s shares? If we believe, then the correction time is the time to buy,” Budi told CNBC Indonesia on Monday (7/4/2026). Furthermore, Budi assessed that this new IDX policy risks pressuring index performance and has not fully accommodated issuer interests, especially since share ownership concentration data is deemed necessary to explain as a form of exchange transparency. On the other hand, Director of PT Reliance Sekuritas Indonesia Tbk Reza Priyambada said the HSC list is essentially a form of transparency in share ownership to the public. However, investors still need to consider performance, prospects, and share liquidity before making investment decisions. “Market players will see again what the responses from those company managements are, whether they will increase public share ownership so as not to re-enter the HSC criteria,” Reza stated. Meanwhile, Founder of Republik Investor Hendra Wardana views the HSC announcement as triggering short-term share price adjustments. Stocks with illusory liquidity and concentrated ownership tend to face pressure as the shift towards a more transparent market occurs. “In market conditions like this, the most rational strategy is not to panic, but also not to be too aggressive. Investors should start accumulating gradually (buy on weakness), especially in stocks with strong fundamentals, high liquidity, large free float, and not in the HSC category,” he explained. From a technical perspective, Hendra assessed that the JCI is currently in a crucial area after breaking through the 7,000 level. If the 6,917 level cannot hold, the index could potentially fall to around 6,745, while a strengthening would require a breakout in the 7,300-7,350 area.